Primedex, Roofing Supply set price talk; GM financial results push auto sector higher

By Sara Rosenberg

New York, July 26 - Primedex Health Systems Inc. started floating price talk on its proposed credit facility around the marketplace as the deal is getting ready to launch into syndication with a bank meeting on Aug. 3.

Also on the price talk front, The Roofing Supply Group announced opening spreads on its deal while presenting it to lenders with a bank meeting Wednesday.

In other news, General Motors Corp.'s positive second-quarter financials gave the auto sector, as a whole, a noticeable boost, as not only did GM's loan rise in trading, but Lear Corp. and Accuride Corp. followed suit as well.

Primedex released price talk on its proposed $405 million credit facility ahead of the Aug. 3 bank meeting that will officially kick off syndication on the transaction, according to a market source.

The $45 million revolver (B) and $225 million six-year first-lien term loan B (B) are both being talked at Libor plus 350 basis points, and the $135 million seven-year second-lien term loan (CCC+) is being talked at Libor plus 750 basis points, the source said.

General Electric Capital Corp. is the lead bank on the deal.

Proceeds will be used to fund the acquisition of Radiologix Inc. in a cash and stock transaction valued at about $208 million, including net debt, and to refinance existing debt at Primedex and Radiologix.

Under the agreement, Radiologix shareholders will receive a total of 22,621,922 shares of Primedex common stock and $42.95 million in cash.

The transaction is subject to customary conditions, including Radiologix and Primedex shareholder approval and antitrust clearance.

In conjunction with the transaction, Primedex intends to change its corporate name, subject to shareholder approval, to Radnet, Inc.

Primedex is a Los Angeles-based operator of outpatient diagnostic imaging facilities. Radiologix is a Dallas-based provider of imaging services.

Roofing Supply price talk

Roofing Supply came out with price talk on its proposed $320 million credit facility as syndication on the transaction began with a bank meeting during market hours, according to a source.

The $50 million revolver was launched with opening talk of Libor plus 250 basis points, the $185 million first-lien term loan B was launched with opening talk of Libor plus 250 to 275 basis points and the $85 million second-lien term loan was launched with opening talk of Libor plus 600 to 650 basis points, the source said.

JPMorgan and Goldman Sachs are the lead banks on the deal, with JPMorgan the left lead.

Proceeds will be used to help fund Sterling's leveraged buyout of the company.

Travelport nets interest

Travelport Inc. launched its proposed $2.6 billion senior secured credit facility in New York on Wednesday to be met with "great momentum already" following a "packed" bank meeting, according to a market source.

The facility is comprised of a $275 million six-year revolver, a $125 million seven-year synthetic letter-of-credit facility and a $2.2 billion seven-year term loan, with all tranches talked at Libor plus 250 to 275 basis points.

Of the total term loan amount, at least $500 million will be carved out into a euro tranche, and it may even be as high as $750 million.

A bank meeting to launch the deal to European investors will take place in London on Thursday.

UBS Investment Bank, Credit Suisse Securities LLC and Lehman Brothers Inc. are the lead banks on the credit facility.

Proceeds will be used to help fund The Blackstone Group's leveraged buyout of Travelport from Cendant Corp. for about $4.3 billion in cash.

The transaction is subject to satisfaction of customary conditions to closing, including the receipt of applicable regulatory approvals, and is expected to close in August.

Travelport is a Parsippany, N.J.-based travel distribution services company.

GM earnings boost sector

The auto sector in general saw bank debt levels strengthen by around a quarter to a half a point depending on the specific issuer after GM announced inspiring second-quarter numbers, according to a trader.

Detroit-based automotive company GM saw its newly obtained credit facility rise to 95 bid, 95½ offered, up a quarter of a point from Tuesday's levels of 94¾ bid, 95¼ offered, according to a trader.

Lear, the Southfield, Mich.-based supplier of automotive interior systems and components, saw its revolver levels strengthen to 94¾ bid, 95¾ offered, up a half a point from previous levels, the trader continued.

And Accuride, an Evansville, Ind.-based manufacturer and supplier of wheels, saw its term loan B trade up about a quarter of a point to par 1/8 bid, par 5/8 offered, a second trader added.

"GM numbers at first glance were much better than expected," the second trader said. "There are a lot of add back and one time adjustments. After a rational look, they were good but not great. But bonds stayed higher and equity was up over a buck."

On Wednesday morning, GM announced that for the second quarter it reported a net loss of $3.2 billion, or $5.62 per share, including a total of $4.3 billion, or $7.66 per share, in special items that reflected a previously announced $3.7 billion after-tax charge related to the successful accelerated attrition program, in which 34,400 hourly employees participated. By comparison, for the second quarter of 2005, the company reported a net loss of $987 million, or $1.75 per share.

Adjusted net income for the quarter, excluding special items, was $1.2 billion, or $2.03 per share, on record revenue of $54.4 billion, an improvement of $1.4 billion from the year-ago adjusted loss of $231 million, or $0.41 per share, on revenue of $48.5 billion.

And, adjusted operating cash flow for the quarter was $700 million, a more than $2 billion improvement compared to the second quarter of 2005.

B/E Aerospace closes

B/E Aerospace Inc. closed on its new $225 million credit facility consisting of a $150 million five-year revolver with an interest rate of Libor plus 175 basis points and a $75 million six-year term loan with an interest rate of Libor plus 200 basis points.

JPMorgan, UBS and Credit Suisse acted as joint lead arrangers and joint bookrunners on the deal, with JPMorgan the administrative agent.

The term loan has a $75 million accordion feature.

Proceeds were used to help fund the company's tender offer for its 8½% senior notes and refinance its existing $50 million revolver.

B/E is a Wellington, Fla., manufacturer of aircraft cabin interior products and an aftermarket distributor of aerospace fasteners.

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